The Japanese businesspeople also identified transportation problems and unforeseen costs of doing business here as the obstacles to attracting increased investment.

They said inadequate power and gas supply to the industrial plants, bureaucratic tangles, lack of political will, coordination among government agencies, and delay in payment against LC (letter of credit) also bar Japanese investment in Bangladesh.

"Presently, infrastructure facilities in Bangladesh are not sufficient for doing business as a lot of business impediments still exist," said Hideo Ueno, vice president of Japan Bangladesh Chamber of Commerce and Industry (JBCCI). He was speaking at a seminar on 'Promotion of Trade & Investment: Japan-Bangladesh Initiatives' at Dhaka Chamber of Commerce and Industry (DCCI) auditorium in the capital.

Mahbubur Rahman, president of International Chamber of Commerce-Bangladesh (ICC-B) conducted the seminar, while Commerce Minister Altaf Hossain Choudhury, Japanese Ambassador in Dhaka Matsushiro Horiguchi, DCCI President MA Momen and JBCCI President Matiur Rahman were present.

"However, there are also some successful investment stories like those of YKK and Kafco," Ueno said.

A survey conducted by the JBCCI on Japanese business community in Bangladesh was presented at the seminar. A total of 33 Japanese companies in Bangladesh out of 66 pointed out different business-related problems in the survey.

According to the survey, Japanese businessmen have hinted at 34 barriers to investment in Bangladesh.

According to the survey, the obstacles include customs clearance, insufficient market information, public holidays on Friday and Saturday, high duty structure, natural disaster and inadequate port facilities.

Some other hindrances to investment are high handling cost for sea and air cargo, delay in making payment to overseas suppliers, inadequate gas supply, high bank interest, disputes in tariff and HS code, trade regulation, labour union, labour laws and regulations, difficulties in getting loans from local banks and language barriers.

In the survey, Japanese businesspeople recommended preparation and implementation of a strategic transportation plan immediately for the capital and other major cities of Bangladesh.

Japanese Ambassador in Dhaka Matsushiro Horiguchi said potential Japanese investors usually consult the Japanese companies operating in Bangladesh prior to drawing any investment plan.

"So, the recommendations by these business organisations have significance in promoting trade and investment in Bangladesh," he added.

Free access of leather goods to Japan sought

Meanwhile, Bangladeshi businesses at the seminar urged Japan to give duty free market access of its leather and leather goods to the Japanese market.

"To reduce the trade gap with Japan we need duty free market access of our leather and leather goods to the Japanese market," said Mir Nasir Hossain, president of Federation of Bangladesh Chambers of Commerce and Industries (FBCCI).

Addressing the function, Commerce Minister Altaf Hossain Choudhury said, "We are discussing with Japanese government to get duty free access of Bangladeshi leather and leather goods to Japanese market."